TL;DR: See how listening translated into three real capital structures: supportive loans serving 25,000 families in Brazil, revenue-based financing for a Black Woman Veteran-Owned brand, and milestone-based forgivable loans rebuilding a disappeared industry.
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Why Structure Matters
The mismatch between capital covenants and business models can slow growth, or worse, push mission-driven organizations off-mission.
Solution
Traditional financing is often too rigid for the realities impact-focused founders face.
At Impact Charitable, we believe capital should be flexible and adaptive, tailored to the investee’s needs and structured for long-term success. We don’t adhere to conventional rules of how finance “should” work; instead, we build systems that prioritize equity, inclusion, and creativity.
Having deployed $100 million across 18+ structures, we’ve learned that the most effective solutions emerge from genuine listening and partnership.
As a philanthropic capital intermediary, we bridge funders and communities, unlocking capital for both nonprofit and for-profit ventures, projects, and funds, always looking for ways to say yes to impact.
Below are three key examples from our portfolio that illustrate how flexible and responsive structures can unlock real-world impact.
Case I: Deferred Payment Loan: FINAPOP
Context: FINAPOP provides loan capital to family farming cooperatives in Brazil’s Agrarian Reform settlements – communities systematically excluded from traditional financial systems. Since its founding, FINAPOP has loaned $11.5 million to 25,000 families, creating access to credit where none existed before. Their model prioritizes agroecological production and food sovereignty, offering low-cost financing that mirrors the values of the communities they serve.
Need – The business is at an early stage and requires flexible capital to support their efforts and develop a track record of providing loan capital to family farming communities in Brazil.
Barrier – Lack of patient capital required given the stage of their efforts and the communities they are serving.
Solution
We structured a patient, low-cost loan consistent with the types of financing, and repayment timing FINAPOP provides to its investees. The loan also included an extended grace period.Outcome/Learning – The capital enabled FINAPOP to pass this benefit to their investees as they build their organizations. Responsive capital doesn’t just fund the work; it protects the mission. Without supportive capital aligned with their mission, FINAPOP would face an impossible choice: charge higher rates (undermining their impact thesis) or limit their reach (reducing access for the communities that need it most).
Case II: Revenue Based Financing: ICONI
Context: ICONI is a Black Woman Veteran-Owned activewear brand founded by Angel Johnson and based in Denver, Colorado. The brand has achieved significant market validation—featured in Oprah’s Favorite Things in 2020—and built a loyal customer base around size-inclusive, motivational activewear. But like many women BIPOC founders, Angel faced a familiar barrier: insufficient access to flexible capital that matched her seasonal revenue patterns and growth trajectory.
Problem – The business required an investment aligned with their revenue model (involving seasonality) and business growth. They were also looking for reduced repayment pressure as they were iterating and growing.
Barrier – Insufficient accessible and flexible capital for women BIPOC founders.
Solution
We structured a flexible revenue-sharing agreement allowing the brand to repay a percentage of quarterly revenue rather than a fixed debt service, supporting both cash flow stability and long-term sustainability.
The investment was also guided by a community advisory committee that brought together expertise across startup accelerators, direct founder experience and the Black community.
Outcome/Learning – For women BIPOC founders facing systemic barriers to capital, structure isn’t just financial, it’s about preserving agency. This structure enabled the company to invest in inventory, marketing, and operations during a critical growth phase, while also preserving their cash balance. Revenue-based financing is a great tool for revenue-generating, small businesses who are growing and need capital that can match their growth trajectory.
Case III: Milestone-based, Interest-bearing Forgivable Loan: PA Flax Project (PAFP)
Context: The Pennsylvania flax industry once thrived, but it has nearly disappeared—taking with it economic opportunities for family farmers and a climate-positive alternative to synthetic textiles. The PA Flax Project, a cooperative founded by farmer Emma de Long and textile designer Heidi Barr, is working to rebuild this supply chain from the ground up. Their goal: put 4,000 acres of fiber flax into production annually and establish the first cooperatively owned scutching mill in North America by 2028. If successful, hundreds of Pennsylvania farmers could gain new revenue streams from this resilient, soil-regenerative crop.
In 2024, PAFP received a $1.7 million USDA grant—validation of their model’s potential. But proving the concept requires patient capital for infrastructure, research, and partnership-building with uncertain timelines. Traditional lenders won’t finance early-stage agricultural innovation where “success” is measured in soil health, farmer livelihoods, and regional economic revitalization—not just financial returns.
Problem – The business required patient and low-cost capital, supportive in their ongoing research and business development efforts to showcase a proof of concept.
Barrier – Lack of innovative and mission aligned players willing to experiment with structures like a forgivable loan.
Solution
We supported PAFP with a low cost forgivable loan tied to impact milestones spread across different projected phases of the business.
Outcome/ Learning – The forgivable loan structure enabled PAFP to lay the foundation for sustainable income streams for local producers. It also helped ensure that the business was rewarded for “additional” impact created. We’ve seen compliance success when impact KPIs are co-designed with the investee, and when there’s less rigidity around the achieved impact.
The How Matters as Much as the What
Impact-first investing isn’t just about the “what”, it’s about the “how” as well. With our relationship-oriented approach, expertise in investment structuring, and operational efficiency, we continue to refine our approach to match real-world needs and make capital work for both business and the balance sheet.
What’s Next: Expanding Our Impact
The three examples above represent our work to date—but our commitment to responsive structures continues to evolve. Most recently, the J.P. Morgan Chase Foundation selected Impact Charitable to manage a $2.1M fund supporting underserved entrepreneurs acquiring businesses, in partnership with New Majority Capital .
This new fund addresses a critical gap: nearly 60% of small business owners lack formal succession plans, and aspiring entrepreneurs—particularly those from underserved communities—often lack the “last mile capital” needed to complete ownership transitions.
Solution
By listening to this systemic challenge, we’re designing capital structures that keep businesses in communities, preserve jobs, and build generational wealth.
The partnership reflects the trust that comes from demonstrating that listening-first capital design works. We’re honored to bring our responsive approach to this critical challenge as part of JPMorgan Chase’s Wealth Building Month initiative.
Ready to Explore Responsive Capital Structures for Your Portfolio?
Impact Charitable’s Capital Activation Services help philanthropic investors design flexible structures that match enterprise needs—from revenue-based financing to forgivable loans to patient capital.
We work with DAFs, foundations, and individual philanthropic investors to:
- Design capital structures that align with your values and enterprise needs
- Conduct due diligence with a relationship-first approach
- Deploy capital with both speed and fit
- Provide ongoing support to ensure structures work as intended
With $100 million deployed across 18+ investment structures, we’ve learned that the best investments start with listening, not term sheets.
Author: Tanya Jain
Senior Investment Analyst at Impact Charitable, where she structures catalytic, flexible capital to advance equitable economic outcomes. She blends technical underwriting expertise with a collaborative, listening-led approach to investing.
